Start Smart: Financial foundations I wish I knew when I launched my first business

Years ago, I ran my own floral company, and today I still run a small coffee shop on the side. I understand firsthand the mix of passion, panic, spreadsheets, and stubborn hope that comes with building something from the ground up.

Between branding, building a website, finding clients, and learning how to invoice, it’s easy to delay the “money stuff” until later. But truthfully? Getting your financial foundations right from the start can be the difference between a business that grows and one that just gets by.

Here are 5 financial steps every new business owner should get right from day one:

1. Separate Your Business and Personal Finances

It sounds simple, but it’s often overlooked. Open a dedicated business bank account — even if you’re still operating as a sole proprietor.

Why?

Mixing business and personal money makes it hard to track expenses, manage taxes, or truly understand your business’s cash flow. Clean separation = cleaner decisions.

2. Budget Like a Business (Not a Hustler)

You don’t need a fancy spreadsheet, but you do need a plan.

Know:

• What it costs to run your business each month

• How much do you need to earn to break even

• What your expected income looks like

3. Plan for Tax from Day One

Many new entrepreneurs make the mistake of using all their income without setting aside for tax. Then tax season hits — and panic sets in.

What to do:

• Set aside a percentage of each payment

• Register with SARS if you’re not already

• Learn about provisional tax if you’re a sole prop or freelancer

Do you need help with that? A financial advisor or tax professional can guide you through the process — even if you’re just starting small. I cannot emphasize enough how much it helped me when there was an expert who guided and advised.

4. Track Every Rand

You can’t manage what you don’t measure. Whether you use an app, cloud software like Xero, or a simple Google Sheet — start tracking:

• Income

• Expenses

• Outstanding invoices

• Profit (even if small!)

Why it matters:

This becomes the backbone of your decision-making. Plus, if you ever want funding, finance, or to scale, solid records build trust.

5. Protect Yourself (and Your Business) Early

We get it — cash is tight in the beginning. But skipping basic risk planning can cost more later. A few things worth exploring:

• Business insurance (especially if you sell products or work with clients in person)

• Income protection (if you’re your only employee)

• Retirement savings (yes, even a small monthly amount helps)

• A will (especially if you have dependents or assets)

A financial advisor can help you build this into your plan at a pace that matches your growth.

Final Thought: Build It Like You Mean It

Even if you’re starting small, treat your business like something that’s going to grow. Lay the foundations. Ask for help. And plan with purpose.

Need guidance on any of the steps above?

We offer personalized advice for start-up founders who want to build smarter, not harder. Get in touch to book a no-obligation discovery session.